Carpet Co-Op of America Acquires Flooring America, GCO and Carpet Max Canada Franchises (11/00)

Carpet Co-Op of America announced that it has acquired the Franchise systems of Flooring America, GCO, and Carpet Max Canada. Purchase price was $13.25 million.

The purchase will expand the corporation's annual sales volume to $4.5 billion and bring some 250 Flooring America and 100 GCO stores in the U.S. and 100 Carpet Max Canada locations into the Carpet Co-Op of America family. All Franchises were part of the estate of bankrupt Flooring America, Inc.

"We believe that these acquisitions will significantly strengthen our company and provide important benefits," said Howard Brodsky, co-CEO of Carpet Co-Op of America. "With the Flooring America and GCO franchises added to our organization, we will be able to achieve much greater economies of scale and higher efficiency in key areas. Among the most immediate benefits will be the ability to achieve significant reductions in distribution costs for all companies."

"We felt that if we could acquire these businesses on the proper terms, it would be very advantageous," added Alan Greenberg, co-CEO of Carpet Co-Op of America. "We carefully reviewed the strategic value of these transactions with our Board of Directors and were very pleased by their enthusiasm. We are also pleased that most of the existing management within the Flooring America and GCO organizations will remain on board."

The purchase of the Flooring America and GCO franchises is part of Carpet Co-Op of America's aggressive strategy for continued growth. Early last month, Carpet Co-Op of America acquired a majority interest in FloorExpo, Inc., which serves the fast-growing residential builder's market.

Carpet Co-Op of America, founded in 1985, is the world's largest floor covering group, with more than 1,800 locations in the United States, Canada, Australia, New Zealand and Guam. Annual sales volume in 1999 was more than $3 billion. Carpet Co-Op of America Association is headquartered in Manchester, New Hampshire; St. Louis, Missouri; and Atlanta, Georgia.